N.C. Agriculture Commissioner Resigns

SCOTT MOONEYHAM

Published 8:00 pm, Thursday, June 5, 2003

Associated Press Writer

North Carolina's agriculture commissioner, who has been embroiled in a two-year scandal involving State Fair contracts awarded to campaign donors, said Friday she decided to resign after learning that another of her aides would be indicted.

Gov. Mike Easley had called for Commissioner Meg Scott Phipps to step down and said he would accept the resignation, Phipps' attorney said.

Last year, the state Board of Elections found that Phipps campaign violated state law by taking $84,202 in cash from donors it could not identify and more than $14,000 in illegal corporate contributions. The board fined the campaign $130,000.

A federal grand jury has also been investigating Phipps' campaign finances and State Fair contracts that have been awarded since she took office in 2001, and two of her former aides have pleaded guilty to federal charges, including extortion.

Phipps said Friday that she decided to resign after learning that deputy commissioner Mike Blanton would be the next aide to be indicted.

"It is now clear that it is in the best interests of my family, my friends, colleagues at the Department of Agriculture and the entire North Carolina farming community that I resign my post," she said in a statement released by her lawyer.

The state constitution calls for Easley to appoint a successor. Phipps, the daughter of former North Carolina Gov. Bob Scott, has about a year and a half left on her term.

Blanton said Thursday that U.S. prosecutors had subpoenaed more Department of Agriculture documents and called department lawyer David McLeod to testify. He said the requests include personnel files for himself, Phipps and former Deputy Commissioner Weldon Denny, as well as time sheets, travel records and documents related to a 2001 Christmas party.

Blanton, McLeod and fair manager Wesley Wyatt were called to testify before the grand jury last month, but never did because the grand jury was hearing other evidence.

Blanton said Thursday he was aware he could be indicted.

"I certainly think that it could be a possibility. I don't know anything for sure at this point. The investigation is underway," he said.

He said he had not received any letters from prosecutors indicating that he is a target of the investigation, and that he was unaware of any received by Phipps.